First question is what kind of Xen guests are the default for Rackspace (PV or 
HVM). I suspect PV because of the dmi/id errors. Then I wonder whether there is 
anything more related to Xen installed in the guests than libxen and 
libxenstore.
The message about xen-toolstack actually shows a glitch in the libvirt package 
(missing a leading slash) but that should not cause the libvirt daemon to not 
start.
Could we get the full libvirt.log here? Also could someone check dmesg/syslog 
for libvirt related messages? It would also be good to get a little more 
background on why libvirt-bin is installed inside the guest.

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https://bugs.launchpad.net/bugs/1248025

Title:
  libvirt-bin fails to start inside Xen

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